The Income Tax department has asked Election Commission of India (ECI) to derecognise Aam Aadmi Party (AAP) for filing “false and fabricated” audit reports on donations, a media report said on Friday.

New Delhi: The Income Tax department has asked Election Commission of India (ECI) to derecognise Aam Aadmi Party (AAP) for filing “false and fabricated” audit reports on donations, a media report said on Friday.

The I-T department said the “false and fabricated” audit reports were filed in 2013-14 and 2014-15 and hence “the registration of AAP as a trust and as a party could be revisited and cancelled”, Hindustan Times reported quoting unnamed highly-placed sources in the department. The issue is related to donations of Rs 27 crore to AAP in in 2013-14 and 2014-15.

The report by IT department has come a day before the crucial elections in Punjab and Goa where Arvind Kejriwal led AAP is fiercly contesting against BJP and Congress.

Meanwhile, the AAP has rejected the charge and accused the BJP of playing dirty politics just before polls in Punjab and Goa.

“They are trembling with fear because people in Punjab and Goa both are overwhelmingly voting for AAP and a humiliating defeat is staring at them in the face,” the newspaper quoted AAP's national treasurer Raghav Chadha as saying.